IRAQ | Oil Refineries

[sheytanElKebir]

KBR Wins Maysan Refinery Contracts
Posted on 24 August 2010. Tags: Halliburton, KBR, Maissan, Maysan, Missan, Refineries

KBR (NYSE: KBR) today announced that it has been awarded two contracts by the Republic of Iraq Ministry of Oil through the South Refineries Company. KBR will provide licensing and basic engineering services for the construction of Fluid Catalytic Cracking (FCC) and Solvent Deasphalting (SDA) units at the planned grassroots Maissan Refinery in Maissan [Maysan], Iraq. Work on the projects is expected to commence immediately.
KBR will license its FCC Technology for an anticipated 47,500 barrels per day (BPD) FCC unit and its Residuum Oil Supercritical Extraction (ROSE(R)) technology for a 45,000 BPD SDA unit. The FCC unit will be delivered under a joint marketing alliance between KBR and ExxonMobil Research and Engineering Company (EMRE).
“These awards mark the first wins for KBR’s Technology Business in Iraq and provide KBR the opportunity to introduce two of its leading refining technologies into an important, emerging market,” said Tim Challand, President, KBR Technology. “We look forward to forging a solid and sustainable relationship with the Ministry and South Refineries Company.”
KBR is a global engineering, construction and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power and industrial markets.

[sheytanElKebir]

very interesting news, since as I remember in August Shaw Group hadn't even finished the FEED... does this mean that the FEED has been taken away from Shaw? KBR is getting up and ready with EPC work.

[sheytanElKebir]

http://www.bloomberg.com/news/2010-1...-be-found.html

Iraq is prepared to stump up for the cost of building one of four refineries planned in a $20 billion program if investors can’t be found, Deputy Oil Minister Ahmed al-Shamma said.

The government may disburse annual payments from the state budget to pay for the construction of a refinery in the central city of Karbala, Shamma told reporters today during a conference in Basra, Iraq.

“The Karbala refinery is a priority,” as it is in central Iraq where consumption is very high, he said.

Iraq, holder of the world’s fifth-largest oil reserves, has plans to build four refineries to almost double its capacity to process fuel and cut dependence on gasoline and other product imports.

The four refineries, designed to add capacity of around 750,000 barrels a day, will be based in Karbala, in the northern Kirkuk region, the eastern Maysan area, and Nassiriyah in the southeast.

Iraq has refineries in Baghdad’s Dora district, in the southern region of Basra and in the northern city of Baiji. The three have a combined capacity of 700,000 barrels a day and can produce about 500,000 barrels a day because of wartime damage. The country also has about 30 smaller refineries that together have a total production capacity of 300,000 barrels a day.

[BigDreamer]

there is already a huge budget deficit !


where will they find the money (without significantly cutting operating costs in the budget)?

[sheytanElKebir]

Iraq open to talks to develop Nassiriyah field, build refinery
Tokyo (Platts)--25Jan2011/313 am EST/813 GMT

Iraq Deputy Oil Minister Ahmed al-Shamma said Tuesday his country was open to one-to-one negotiations for a deal to both develop the Nassiriyah oil field and build a 300,000 b/d refinery in the region. "There is a good chance of negotiating a deal like that," Shamma told reporters in Tokyo. "It is a possibility that is accepted by most of my colleagues at the ministry," Shamma added, in reference to a deal that would combine both the downstream and upstream projects.

Shamma added a "big part" of Nassiriyah's 300,000 b/d refining capacity, which would be fully supplied by the Nassiriyah oil field, would be made available for export. Earlier this month Iraq's Deputy Prime Minister for Energy Hussein al-Shahristani, who is also the country's former oil minister, said the oil ministry planned to issue a tender for development of the Nassiriyah oil field this year.

Shahristani's comments followed previous negotiations between Iraq and a Japanese consortium about a possible engineering, construction and procurement contract for the field that ended last year without a deal.

It was not immediately clear whether Baghdad's next tender would be limited to upstream development of Nassiriyah or whether it would also include building an oil refinery in the province, as previously envisaged by Iraq.

With regards to when the tender for Nassiriyah would be announced, Shamma said the "timing had not been decided on that," adding this was partly due to Iraq giving priority to licensing rounds for gas and exploration projects.

He also said Japanese consortiums interested in negotiating for the project would have a good chance of securing a deal for Nassiriyah because of previous work they has done in the country. The Nassiriyah field was not included in either of the two international bidding rounds launched last year by the oil ministry, with Iraq inviting Nippon Oil to bid on a separate EPC contract to develop the field.

The Nassiriyah EPC contract was designed to raise output to 100,000 b/d within 18 months of the contract being signed. Production was set to rise to 150,000 b/d and possibly to 200,000 b/d within two years of the contract coming into effect.

[BigDreamer]

Attack shuts Iraqi Beji oil refinery

SAMARRA, Iraq — An attack on Iraq's biggest oil refinery early on Saturday left two engineers dead and one of its refining units badly damaged, prompting the facility to shut down, a senior official said.

The attack on the Baiji refinery, in Salaheddin province north of Baghdad, struck at around 4:30 am (0130 GMT) when gunmen stormed the installation, killed the engineers and planted bombs at the refining unit.

"Armed men entered the refinery and shot dead two of the engineers," said Abdul Qader al-Saab, the facility's deputy chief.

"Then they detonated bombs at one unit, the Al-Shamal unit, of the refinery, which represents 25 percent of the refinery's production. In the morning, we came to put out the fire, which erupted as a result of the bombs."

He added that the unit was badly damaged and the entire refinery had been closed.

Iraq currently has three major refineries -- Baiji in the north, Basra in the south, and Dora in south Baghdad.

They have a combined capacity to handle 550,000 barrels per day of crude, producing refined products including 12 million litres (3.2 million gallons) of petrol, 15 million litres of diesel, nine million litres of heating oil and large volumes of fuel oil for power stations.

Baiji on its own has overall capacity of 290,000 barrels but was operating at 70 percent capacity before the attack.

The combined effects of years of UN sanctions against the regime of now executed dictator Saddam Hussein, and the US-led invasion of 2003 and its violent aftermath have meant that they are in serious need of refurbishment.

[BigDreamer]

this is really bad news... on top of the problems we have already.. now we get serious fuel shortages

[BigDreamer]

Work to begin on Nassiriyah refinery in Iraq

Design will begin soon on a 300,000 b/d refinery to be built in Nassiriyah, Iraq, according to a key contractor.

UOP LLC said Iraq’s State Company for Oil Projects, part of the Ministry of Oil, has selected it to provide reforming, isomerization, fluid catalytic cracking, and selective hydrotreating technologies for the new facility.

As part of the overall technology package, UOP will provide basic engineering, technology licenses, catalysts, and specialty equipment.

UOP, part of Honeywell, noted that Iraqi refining capacity is to more than double by 2017 to 1.6 million b/d and to double again by 2030.

Last year, the oil ministry reported plans to invest about $20 billion in four refineries. In addition to the facility at Nassiriyah, it has let contracts for preliminary work on refineries with capacities of 150,000 b/d each at Karbala, Kirkuk, and Maysan

------------------

looks like it's the FEED to me.. not actual construction

[elusive]

Originally Posted by BigDreamer

this is really bad news... on top of the problems we have already.. now we get serious fuel shortages

and they say other countries aren't sabotaging iraq...give me a break. i really hope they find where these attackers are coming from and who's financing them...

[BigDreamer]

that was from Feb btw not today..

but yea, ofcourse other countries are financing them.. and we know very much who they are..

good thing now the army has stepped in to guard the Beji refinary (was on the news a week or so ago.. i forgot to post about it)..

[sheytanElKebir]

We are starting work on nassiriya in a few months. But it's only At the design stage now, we won't finish the design until early 2012.

[BigDreamer]

Oh right, thanks for that..

do you know what's going on with the karbalaa refinery ? did they start construction or not yet?

[sheytanElKebir]

SOME construction started already back in September 2009. Progress is going at snail's pace... basically Iraqis are paying for things piecemeal and still trying to find "foreign investors" TO BITE... but now they realise they simply have to fund it themselves step by step, and with a loan from the World Bank/Other international Bank (no loan has been approved for it to speed up implementation yet).

[BigDreamer]

Honeywell technology chosen for new transportation fuel refinery in Iraq

The State Company for Oil Projects, through the Ministry of Oil for Iraq, has chosen Honeywell's (NYSE:HON) UOP technology to expand transportation fuel production in Iraq.


The UOP technology will process up to 300,000 barrels of crude oil a day into gasoline and diesel at a new refinery to be built in Nassiriya, Iraq.


UOP technologies to be used in the new refinery will include the CCR Platforming and Penex processes, which are used to produce high-octane gasoline, and the UOP FCC and Selectfining, which produce ultra-low sulfur diesel fuel and gasoline.


UOP will provide reforming, isomerization, fluid catalytic cracking (FCC) and selective hydrotreating technologies, as well as basic engineering, technology licenses, catalysts and specialty equipment for the new refinery, with design commencing in the second quarter of 2011.


"We are pleased to be working with the SCOP again as Iraq focuses on doubling its oil refining capacity," said Rajeev Gautam, president and CEO of UOP. "The high yields delivered by our technologies combined with our methodology for process unit integration and optimization will enable SCOP to produce the maximum yields of high-quality gasoline and diesel product while also maximizing the economic value of the project."


Iraq is expanding refining capacity in the Middle Eastern country to 1.6 million barrels a day by 2017, more than two times the capacity of its existing refineries. Iraq's refining capacity is expected to double again by 2030.

[BigDreamer]

Originally Posted by sheytanElKebir

SOME construction started already back in September 2009. Progress is going at snail's pace... basically Iraqis are paying for things piecemeal and still trying to find "foreign investors" TO BITE... but now they realise they simply have to fund it themselves step by step, and with a loan from the World Bank/Other international Bank (no loan has been approved for it to speed up implementation yet).

I see.

Do you reckon that it will be the same case for the Nassryiah refinery, or have they got the finance in order this time round ?

[Persi]

UK Consultants Win £31m Iraqi Oil Refinery Deal

Posted on 20 July 2011.

A £31 million contract – the biggest agreed in nearly two decades of operations – has been landed by consultant process engineers Grimley Smith Associates (GSA), according to the Grimsby Telegraph.

The Brigg-based company has been awarded a two-year project to upgrade facilities at an oil refinery in Basra, Iraq.

It is with the South Refineries Company of Iraq, part of the Iraqi Ministry Of Oil, and will involve the engineering, procurement and construction of site utilities.

Dr Andrew Grimley, executive chairman of GSA, said: “This is a major milestone in our history, signing our biggest contract to date.

“Reaching an agreement on the deliverables with the client and Ministry Of Oil in Iraq has now been achieved, so we are now in the process of ironing out the detail.”

The company has received signed copies of the contract and has accepted a letter of credit. Initial meetings have also been held.

Michael Grimley, project manager at GSA, said: “We are delighted to have been awarded such a large project in Iraq.

“With an operable letter of credit and all other contractual requirements met, we are confident in starting the engineering.”

GSA has taken on the role as turnkey contractor and will undertake all aspects of the design, procurement and project management while working with an Iraqi construction company to deliver the project at site.

The project will involve over 27,000 man hours of design over a two-year period. The current construction period is anticipated to be six months. GSA will be developing the designs from GSA House in Brigg Market Place, using consultants and suppliers local to North Lincolnshire wherever possible.

Founded in 1992 by Dr Grimley and Michael Smith, the firm was bought out by Fabricom UK in December last year.

The company has also recently won a contract with the Centre For Process Innovation and Tata Steel to design and construct a new research facility at Tata Steel’s Teesside Technology Centre in Middlesbrough.

The facility will advance high-temperature technologies and cost £5 million.

Fabricom has secured a major phase of the contract, which includes construction and structural erection, mechanical engineering and instrumentation installation, site establishment and project management.

The project has received £2.5 million investment from One North East through the Tees Valley Industrial Programme, which is helping to accelerate industrial transition in the area and help the region to seize emerging opportunities in low-carbon and advanced manufacturing.

Nigel Carlton, managing director of GSA and Fabricom in the UK, said: “I am pleased to see that the joint capabilities of Fabricom and GSA working together is already providing demonstrable value for our clients.”

[Persi]

Italian Investors MoU for $6.5bn Karbala Refinery

Posted on 26 July 2011.

The Iraqi Ministry of Oil signed a Memorandum of Understanding (MoU) in principle with a group of Italian investors to build a refinery in Karbala, the oil undersecretary for refineries affairs said on Tuesday.

Ahmed al-Shamma said in a statement that the signature was made to enable the consortium complete its procedures for the project, denying recent media reports that a full contract was signed.

The memorandum has period of six months, after which the ministry is no longer bound by this document.

“According to this document, the ministry is ready to extend all possible assistance in regards to supplying them with crude oil and benefiting from the products for internal consumption,” he concluded.

Gulf News, among others, reported that the Ministry of Oil of Iraq had signed an agreement for the construction of the $6.5bn refinery in Karbala with RKC (Refinery of Karbala Corporation Ltd.). The new refinery would have a capacity of 200,000 barrels of crude oil per day

[Persi]

Shell Expands Further in Iraq

Posted on 05 August 2011.

Shell Global Solutions has signed an agreement with the South Refineries Company of Iraq for the provision of technology licenses to a refinery in Basra, Southern Iraq.

Shell Global Solutions will provide a license for a sulphur recovery unit and visbreaker unit as part of the agreement. Together with the refinery expansion, these technologies will contribute to optimised operations at the Basra refinery, significantly boosting capacity.

The sulphur recovery unit is likely to enable the refinery to meet and exceed world standards for emissions whilst the visbreaking unit will help increase overall upgrading, building a future-proof solution.

The upgrading of the refinery will contribute to fulfilling Iraq’s expected future demand for oil products.

“These license agreements demonstrate Shell Global Solutions’ commitment to the country and the development of this sector, as part of the Shell Group’s long-term strategy in Iraq…We are now entering the downstream sector in Iraq, a key growth market” said S. Ozmen, Vice President Licensing, Shell Global Solutions.

“We expect the technology to spearhead the revamp of the Basra refinery, which is likely to lead to its best in class status” said Hanna Al-Jadaa, Project Director, South Refineries Company.

[sh_jinny]

Originally Posted by sheytanElKebir

Iraq has a new project for 4 grass roots refineries.

The projects depend on foreign financing, and this has not been secured yet, but the FEED designs have already been contracted and the first FEED will finish this year, after which Iraq will seek WB funding.

The projects will have the following strategic and tactical advances for Iraq:
-Eliminate imports of refined products
-Export high-value refined products to neighbouring countries
-provide fuel for the expanding consumer base and power generation requirement
-eliminate the use of leaded fuel
-increase output of much needed asphalt
-use the heavy fuels which don't have a very good export market.

The refineries are:
Karbala: 140k barrels/day
Nassiriya: 300k barrels/day
Missan (amara): 150k barrels/day
Kirkuk/Sulaymania: 150k barrels/day

Projects are envisaged to be completed by 2015.

Hi, you say Iraq is much in need of asphalt, but the Ministry said that production exceeds demand. What's your view on that?

http://www.menafn.com/qn_news_story_...yid=1093264424

Do you know any plants in the north region of iraq which buy fuel oil to process into asphalt?

Thank you.

[sheytanElKebir]

I cant go into details due to confidentiality, but the new refineries in Iraq are designed to increase output of white oil products. the main items that they want to increase are diesel, petrol and LPG. The main item that they want to reduce as a fraction is heavy fuel oil which Iraq no longer needs as the new power stations use natural gas.

The asphalt production will go up! Whether they need it or not depends on who you ask... that's how Iraq works (sorry I don't know the specifics of the asphalt needs of the country in depth).

the article you linked is 2 years old, since then asphalt use has probably DOUBLED all over Iraq, all the new refineries have asphalt production, the nature of oil refining means you're always going to end up having SOME asphalt and heavy fuel oil at the end...